Question

ACCOUNTING FOR NOT-FOR-PROFIT ORGANISATIONS,
PARTNERSHIP FIRMS AND COMPANIES
1. X and Y are partners in a firm sharing profits and losses equally. Their final account
for the year ended 31st March, 2020 showed a profit of * 1,50,000. Interest on a loan
of 50,000 from Y at 10% was yet to be accounted. Partners are entitled to salary as
follows: X-15,000; – 10,000.
What is X's total appropriation of profit for the year ended 31st March, 2020?
ta) 77,500
(6) * 70,000
(c) * 75,000
(dl) * 80,000​

Answer 1

Answer:

75000

Explanation:

in p and l ac , we will reduce interest of loan as well so profits will be 145000 then we will subtract the salaries given i.e. 145000-25000=120000. On dividing it equally both partners get 60000. X was paid salary as well 15000. So total appropriation will be 60000+15000=75000